Talking Business Poking Holes in a Theory on Markets By JOE NOCERA Published: June 5, 2009 For some months now, Jeremy Grantham, a respected market strategist with GMO, an institutional asset management company, has been railing about â of all things â the efficient market hypothesis. Jodi Hilton for The New York Times âOur default reflex is that the world knows what it is doing,â says Jeremy Grantham, a market strategist with GMO. You know what the efficient market hypothesis is, donât you? Itâs a theory that grew out of the University of Chicagoâs finance department, and long held sway in academic circles, that the stock market canât be beaten on any consistent basis because all available information is already built into stock prices. The stock market, in other words, is rational... -continued... http://www.nytimes.com/2009/06/06/business/06nocera.html?_r=1&8dpc